The U.S. dollar posted its best session against euro in about a month

The dollar registered its best day against the euro in about a month Thursday after jobless claims data bolstered hopes that Friday’s nonfarm payrolls report will reveal encouraging signs of economic growth.

The dollar gained 0.65% against the euro Thursday, its largest one-day increase since it rose 0.73% against the euro on April 10, according to FactSet data. The dollar has traded lower against the euro for the past two sessions.

Despite Thursday’s gains, the buck is still on track to close higher against the shared currency for the fourth week Friday.

Marc Chandler, global head of currency strategy for Brown Brothers Harriman, said falling eurozone bond yields dragged the euro lower. The yield on the 10-year bund rose to 0.786% in early trade, before falling back to 0.575%. Bond yields move inversely to prices.

Traders are now looking ahead to Friday morning’s hotly anticipated nonfarm payrolls report, which many hope will support the idea that the U.S.’s economic downturn in the first quarter was fleeting.

Chandler said if the employment number is below 200,000, and there is no significant upward revision in last month’s data, Federal Reserve policy makers might delay a rate increase until next year.

The European currency traded higher against the dollar early in the global day before gradually moving lower. The dollar, which weakened against the euro in April, its first monthly loss since June 2014.

Meanwhile, the dollar strengthened against the yen as Japanese traders returned from the Golden week holiday, but it remained well within the narrow range of ¥118 and ¥120 it has seen since mid-March.

The pound shot higher shortly after exit polls from Thursdays’ U.K. election predicted the Tories would win the largest number of seats, but would remain short of an effective majority.

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